Prices of foodstuff, fruits and vegetables have gone up in Saudi Arabia after the implementation of Value Added Tax (VAT). Along with the food tuff, Taxi Fares, Electricity prices ad Fuel prices have also increased in the kingdom of Saudi Arabia.
Chariman of the Committee on Foodstuff at the Jeddah Chamber of Commerce and Industry (JCCI), expects a 30%-40% increase in the prices of fruits, dairy products and vegetables.
He also added retail shops in Saudi were making 25% – 30% profit on fruits & vegetables prior to introduction of Value Added Tax (VAT) in the kingdom and Now their profit margin will increase, he added.
Mutassim Abu Zinadah, chairman of the traders of fruits & vegetables, warned that some retail shops may attempt to hike prices following the introduction of VAT and increase in fuel prices.
“There was a difference of about 20% in the prices of fruits and vegetables in the central market and retail shops before the introduction of VAT,” he said, adding, “Now the difference may go up to 30% after VAT.”
Family budget is being drained out not only by hike in the prices of foodstuff but also by increased transportation fares, private school tuition fees and school bus charges.